Insolvency expert Begbies Traynor (BEG) has said the change in UK economic fortunes had caused its case load to shoot up by nearly a third this year.

The Manchester-based group, which has a Birmingham office, dealt with 1,000 corporate insolvencies during 2007, but had seen a 30 per cent increase so far this year.

Executive chairman Ric Traynor said the downturn could see its core business continue to boom for the next two years as more firms suffered from harder to access funding, falling sales and crippling confidence. He said: “We think the number of corporate insolvencies will steadily rise this year and into next, peaking in 2010.

“We have seen a marked change from the high point of the credit boom last year, to a bust and the opposite feeling.”

Mr Traynor also echoed the comments from the British Chambers of Commerce about the UK teetering on the brink of recession. He said: “If we are not technically in a recession, then we are close to it.

“All the indications are not good good at the moment – falling sales, rising interest rates, a lack of confidence.”

The property and construction, retail, transport and financial services sectors were the hardest-hit, he said.

Some of Begbies’ high profile insolvency engagements this year included business class-only airline Silverjet, which collapsed at the end of May after succumbing to sky-high fuel costs, and the highly leveraged investment fund Carlyle Capital Corporation.

The group – whose share price has risen by around 60 per cent in the last three months – enjoyed a turnaround during the second half of the year to April 30.

Before the onset of the credit crunch last autumn activity had been “one of the quietest periods for corporate insolvency in nearly 20 years”, Mr Traynor said, reflecting the ready availability of “easy credit”.

Insolvency revenues – which comprise around three-quarters of group revenues – were 13 per cent up in the second six months compared with the first half.

Overall underlying profits for the year were £8.1 million, compared with £10 million in the previous year.Revenues were £48.1 million, up from £41.9 million.

Begbies, which also provides corporate finance and tax services, has around 600 staff and partners across the UK.

Its shares lost five per cent on Wednesday, closing 8.5p down at 160.5p